KUALA LUMPUR – Kedah-based property developer Bina Darulaman Bhd (BDB) recorded a pre-tax profit of RM1.13 million for its second quarter ended June 30, 2022 (Q2 FY22), compared to a pre-tax loss of RM6 million in the previous quarter.
BDB’s acting president and group chief executive officer Mohd Iskandar Dzulkarnain Ramli said that this was made possible as a result of the Group enhancing BDB’s core businesses towards revenue resilience and stability, maximising operational efficiencies, enhancing manpower utilisation and financial restructuring.
Operating under business-as-usual conditions, BDB’s Q2 FY22 revenue rose by 64% to RM51.62 million compared to RM31.46 million in the previous quarter. Revenue was up 23% over the RM41.93 million recorded in the corresponding quarter in 2021.
“Kedah was the last state to enter phase four of the National Recovery Plan which allowed for the resumption of business activities. The group’s improved revenue and profitability over the previous quarter are attributed to the resumption and better contributions from its road construction activities and the completion of initiative from its property division,” said Iskandar when briefing the media on BDB’s second quarter financial results today.
BDB’s Property Division more than doubled its quarterly revenue with RM21.22 million compared to RM10.18 million in the previous quarter. Segmental profit for the quarter was RM1.05 million compared to a loss of RM2.19 million in the previous quarter.
“The increase in segmental revenue and profit over the previous quarter is attributed to the income generated from joint venture developments through BDB Setia,” said Iskandar.
BDB’s Engineering, Construction and Quarry (ECQ) Division posted higher revenue of RM31.62 million compared to RM19.63 million in the previous quarter, an increase of 61%. The rise in ECQ’s revenue over the last quarter can be attributed to the overall improvement in construction activities.
Iskandar said that the restructuring has clearly succeeded with BDB taking full advantage of the resumption of normal business conditions and market demand for their services.
“We have successfully realigned the group’s business and operational structure, sharpened productivity and strengthened capital efficiency, thereby ensuring that we overcome the challenges and adversity of 2020 and 2021 and are ready to maximise opportunities in 2022.
“Our substantial pipeline of property development and construction projects – State Road Maintenance, Pelubang Water Treatment Plant, Darulaman Lagenda and Aman Perdana projects – coupled with our track record of delivering projects on time and on budget, bodes well for our ability to secure more contracts in the second half of 2022 and 2023.
“We will also be looking to take on unique projects outside of our core businesses, such as Langkawi Designer Premium Outlet, which will be a significant value multiplier for our property and ECQ Divisions.”
Commenting on the company’s plans for 2023 and beyond, Iskandar said: “The pandemic in 2020 and 2021 demonstrated that our core business was highly vulnerable to lockdowns and movement control orders. The pandemic also demonstrated that certain sectors remained resilient throughout the pandemic phase, namely, the food production, power and telecommunications sectors.
“Looking ahead, the group will be undertaking studies to identify and determine the feasibility of adding these business sectors to thegGroup’s portfolio in order to further embed resilience and futureproof the group’s revenue and profitability.”
Bina Darulaman Berhad (BDB) was established on February 7, 1995 and is listed on the Main Board of Bursa Malaysia Securities Bhd. The group is an investment holding company responsible for township development, construction, road building, quarrying and leisure via its subsidiaries in Kedah – namely, BDB Land Sdn Bhd, Kedah Holding Sdn Bhd, BDB Synergy Sdn Bhd, BDB Infra Sdn Bhd and BDB Leisure Sdn Bhd. – The Vibes, September 22, 2022
